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Note 3 - Variable Interest Entities | 12 Months Ended
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Dec. 31, 2012
Variable Interest Entities [Text Block] |
3. | Variable Interest Entities
Under GAAP, the Company must determine whether each entity, including joint ventures in which it participates, is a variable interest entity. This determination focuses on identifying which owner or joint venture partner, if any, has the power to direct the activities of the entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity disproportionate to its interest in the entity, which could have the effect of requiring us to consolidate the entity in which we have a non-majority variable interest. Where the Company has determined that it is appropriate to consolidate a variable interest entity in which it owns a 50% or less interest, the remaining owners’ interests in the equity and net income of the entity are included in the balance sheet line item: “Noncontrolling owners’ interests in subsidiaries and joint ventures.” The Company owns a 50% interest in Myers of which it is the primary beneficiary and has consolidated Myers into these financial statements. Further see Note 2 above for additional information on the acquisition of this limited partnership. The partnership agreement requires that Sterling provide a $3 million line of credit to the limited partnership. In addition the partnership is relying on the Company’s surety bonding capacity in order to bid and perform large construction jobs resulting in the Company having joint and several liability for completion of such jobs, and the Company will provide management to the partnership to oversee bidding and management of larger projects. Although the Company will receive 50% of the income from the partnership, it may suffer more than 50% of any losses as a result of its obligation to provide the $3 million line of credit and its obligations under the surety bonds. Because the Company exercises primary control over activities of the partnership and it is exposed to the majority of potential losses of the partnership, the Company consolidated Myers within the Company’s financial statements from August 1, 2011, the date of acquisition. The financial information of Myers which is reflected in our consolidated balance sheets and statements of operations is as follows (in thousands):
|  | As of December 31, |
|  | 2012 |  |  | 2011 |
Assets: |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 7,164 |  |  | $ | 1,365 |
Contracts receivable, including retainage |  |  | 2,866 |  |  |  | 2,244 |
Other current assets |  |  | 1,214 |  |  |  | 419 |
Total current assets |  |  | 11,244 |  |  |  | 4,028 |
Property and equipment, net |  |  | 3,041 |  |  |  | 926 |
Goodwill |  |  | 1,501 |  |  |  | 1,541 |
Total assets |  | $ | 15,786 |  |  | $ | 6,495 |
Liabilities: |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 4,627 |  |  | $ | 1,134 |
Other current liabilities |  |  | 6,283 |  |  |  | 2,323 |
Total current liabilities |  |  | 10,910 |  |  |  | 3,457 |
Long-term liabilities: |  |  |  |  |  |  |  |
Other long-term liabilities |  |  | -- |  |  |  | -- |
Total long-term liabilities |  |  | -- |  |  |  | -- |
Total liabilities |  | $ | 10,910 |  |  | $ | 3,457 |
|  | Year Ended December 31, 2012 |  |  | Period from August 1, 2011 (the acquisition date) to December 31, 2011 |
Revenues |  | $ | 84,877 |  |  | $ | 7,153 |
Operating income |  |  | 2,152 |  |  |  | 531 |
Net income (loss) attributable to Sterling common stockholders |  |  | 694 |  |  |  | 170 |
Other current liabilities shown in the table above include $500,000 in demand notes payable that are due to one of the noncontrolling interest owners in 2011 and paid in 2012.

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- Definition Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. + References No definition available. + Details
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Period Type: | duration